Cost of goods sold equals:
A)ending inventory plus net purchases minus beginning inventory.
B)beginning inventory minus net purchases plus ending inventory.
C)beginning inventory plus net sales minus ending inventory.
D)beginning inventory plus net purchases minus ending inventory.

Question

Quizplus · Accepted Answer

Cost of goods sold is calculated by subtracting the ending inventory from the sum of beginning inventory and net purchases. This formula is represented by choice D, which correctly states that cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Cost of Goods Sold Equals